Institutional Investor's Alpha Magazine - May 2008 - (Page 51)

The Hedge Fund 100 returned 51 percent. Both Grifﬁn and Shumway proﬁted from classic long-short equity strategies. Among the most striking showings in this year’s Hedge Fund 100 ranking is by Paulson & Co., the New York– based hedge fund that leapfrogs 61 places, from No. 69 to eighth, on the strength of John Paulson’s early arrival at the Subprime Ball. Paulson, the founder, president and senior portfolio manager at the ﬁrm, became an overnight legend among hedge fund managers by shorting vast pools of collateralized debt obligations and buying credit default swaps at cut-rate prices as the mortgage bubble burst. Paulson & Co. assets were up ﬁvefold in 2007, to $29 billion. But perhaps the most jarring jump in the ranking is that of Birmingham, Alabama–based Harbert Management Corp., which practically comes out of nowhere, having barely made the cut last year (No. 94). Harbert rises all the way to No. 16, with $18.1 billion under management, on the strength of Paulsonesque subprime trading by its subsidiary Harbinger Capital Partners, which manages almost all of the umbrella company’s assets. This feat was pulled off largely by Philip Falcone, who in 2001 founded Harbinger in New York with seed money from Harbert. Even taking these phenomenal numbers into consideration, however, Highbridge’s growth has been spectacular. Those familiar with the ﬁrm attribute its surge-of-capital expansion partly to its marketing: Highbridge competes RANK 2008 2007 FIRM/FUND NAME(S) 26 27 30 Marshall Wace (London, U.K.) 20 Moore Capital Mgmt (New York, NY) Global Investments Fixed Income Fund Remington Emerging Market Fund Credit Fund 21 Perry Capital (New York, NY) Perry Partners International Perry Partners 23 31 34 41 Angelo, Gordon & Co. (New York, NY) Stark Investments (St. Francis, WI) Canyon Capital Advisors (Beverly Hills, CA) Davidson Kempner Capital Mgmt (New York, NY) Firm/fund Return capital net of ($ millions) fees (%) $15,019 15,001 7,915 3,960 1,240 1,050 803 14,530 10,321 3,940 14,500 14,438 14,265 14,100 14,000 * 10,000 * 4,000 * 13,579 12,434 1,145 377 160 127 119 55 13,523 3,101 2,032 150 73 13,300 10,000 2,400 2,400 900 17.86% 13.96 22.21 45.52 17.81 12.16 11.72 RANK 2008 2007 FIRM/FUND NAME(S) 37 48 York Capital Mgmt (New York, NY) York Investment European Opportunities Fund Credit Opportunities Fund Select Unit Trust York Capital Mgmt 16 Caxton Associates (New York, NY) 41 The Children’s Investment Fund Mgmt U.K. (London, U.K.) 10 ESL Investments (Greenwich, CT) 60 TPG-Axon Capital Mgmt (New York, NY) 39 Gartmore Investment (London, U.K.) AlphaGen Capella AlphaGen Tucana AlphaGen Perseus AlphaGen Velas AlphaGen Crucis 24 HBK Capital Mgmt (Dallas, TX) Master Fund 74 QVT Financial (New York, NY) 43 Cheyne Capital Mgmt (U.K.) (London, U.K.) 49 Millennium Partners (New York, NY) Millennium International Millennium USA 36 Adage Capital Mgmt (Boston, MA) 26 BlueCrest Capital Mgmt (London, U.K.) BlueTrend BlueCrest Capital International AllBlue Emerging Markets Strategic 74 Baupost Group (Boston, MA) 40 Maverick Capital (New York, NY) Maverick Fund Maverick Levered 56 King Street Capital Mgmt (New York, NY) King Street Capital, Ltd. King Street Capital, LP 55 Winton Capital Mgmt (London, U.K.) Futures Fund Evolution Fund Firm/fund Return capital net of ($ millions) fees (%) $13,200 3,500 2,900 1,340 1,300 1,130 13,000 13,000 * 20.44% 12.51 26.84 20.8 20.43 28 38 38 38 38 42 29 30 31 32 33 34 35 36 13 5 Citigroup (New York, NY) Citigroup Alternative Investments (New York, NY) Old Lane Partners 6 (New York, NY) 29 HSBC (London, U.K.) Sinopia Asset Mgmt (Paris, France) Halbis Capital Mgmt U.K. (London, U.K.) European Alpha Fund GEM Opportunities Fund Global Technology Alpha Fund Distressed Opportunities Fund Commodities Alpha Fund 50 FX Concepts (New York, NY) Concepts Multi-Strategy Fund Concepts GCP Fund Concepts Global Financial Markets Fund Concepts DMC Fund 35 Bain Capital (Boston, MA) Brookside Capital Partners (Boston, MA) Sankaty Advisors (Boston, MA) Prospect Harbor Absolute Return Capital Partners (Boston, MA) 43 44 45 46 9.41 4.66 5.57 8.5 4.56 7.43 11.92 20.65 6.35 47 47 49 50 51 52 13,000 * –27 13,000 31.2 12,647 3,233 6.6 1,450 12.6 810 8.3 783 1.7 739 7.5 12,500 12,500 0.95 12,400 7 12,250 12,100 9,565 10.79 2,315 10.67 12,000 * 12,000 8 5,150 27.80 3,130 10.52 2,492 10.17 1,950 10.36 1,850 5.74 11,753 54.23 11,500 27.8 52.9 11,455 7,700 16.54 3,600 17.06 11,440 5,070 17.97 428 14.73 5 Rank in 2007 was for Citigroup Alternative Investments. 6 Citigroup acquired Old Lane Partners in April 2007. 7 As of January 1, 2008. 8 Some BlueCrest Capital Management funds invest in underlying funds and are not included in ﬁrm capital to avoid double-counting. MAY 2008 • INSTITUTIONAL INVESTOR’S ALPHA • 51

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - May 2008

Institutional Investor's Alpha Magazine - May 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Send in the Clones The Good Guys: Outside the Box Cover Story: Welcome to Oz Interview: The Tipping Point Regulation: When Sentinels Go Astray Strategies: Taking Credit Research Center: The Hedge Fund 100 Book Excerpt: Shoot the Messenger Alpha Bytes: VaR Enough? Unhedged: Commentary: Not Your Father's Activist

Institutional Investor's Alpha Magazine - May 2008

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